Social Security Loopholes

 I see a Motley Fool ad for Loopholes ... subscribe and we'll show you!

So, I delve into it on my own ... sort of.  Always intersting.   I'm assuming I'll start pulling it in 2 years... or .. not?

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Short answer: most so-called “secret Social Security loopholes” you see advertised are either (a) long-closed (file-and-suspend), (b) real but very limited (restricted application — only for a small birth-year cohort), or (c) legitimate rules that people misunderstand and then an advisor markets as a “trick.” I’ll list the common ones, what’s true/false about each, and what to do next.

Common “loopholes” (what they really are)

1. “File-and-suspend” (claim & suspend) — closed.
   Many sites still describe the old trick where one spouse filed for benefits and immediately suspended them so the other could collect a spousal benefit while the first spouse’s own benefit grew. Congress closed that option in the Bipartisan Budget Act of 2015—you generally can’t use the old file-and-suspend strategy anymore. AARP+1

2. “Restricted application” (claim a spousal benefit only while letting your own grow) — still exists but only for a tiny group.
   That option was dramatically narrowed in 2015. It’s now available only to people who were grandfathered — essentially those born before Jan. 2, 1954 (commonly described as “born on or before Jan. 1, 1954”). If you weren’t in that birth cohort you’re subject to the “deemed filing” rule (when you apply for any retirement benefit you’re treated as filing for all benefits you’re eligible for). Check SSA rules carefully for exact cutoff dates. Social Security Administration+1

3. “Claim on an ex’s record” (divorced-spouse benefits) — real but conditional.
   It’s true you can sometimes collect benefits based on an ex-spouse’s work record (up to 50% of what they’d get at full retirement age) if you were married 10+ years and meet age/marital-status rules. That’s not a loophole so much as a legitimate SSA rule people often overlook. Social Security Administration+1

4. “Survivor benefit timing tricks” — partly real, but complex.
   Survivor benefits (after a spouse dies) can be large (often up to 100% of the deceased’s benefit), and timing/age choices matter — which leads to many legal, non-“secret” strategies for when to claim. These are based on program rules rather than loopholes. AP News

5. “Work while collecting” / earnings-test maneuvers — not a loophole, just rules you can plan around.
   If you claim before full retirement age and keep working, some benefits may be withheld until you reach FRA (there’s an annual earnings limit and different dollar-for-dollar rules). If you reach FRA, you can also voluntarily suspend benefits to earn delayed retirement credits (and increase future checks). These are official rules — not secrets — but timing them correctly can increase lifetime benefit amounts. Social Security+1

6. “Spousal disability/auxiliary benefit” tricks and other niche POMS interpretations — very narrow and often misunderstood.
   There are technical POMS (SSA internal) rules that affect special situations (disabled spouses, widows/widowers, caring for a young child, etc.). These sometimes get marketed as “loopholes” but they’re simply specialized benefit rules with tight eligibility tests. If your situation is unusual, the SSA POMS or a qualified attorney/benefits specialist is the right place to check. LegalClarity+1

Why these “loophole” ads keep appearing

• The 2015 law closed broad tricks but left a few narrow exceptions; marketers highlight the exceptions as if they’re widely available.

• Claiming-timing strategies are legitimate — but complex — so sellers package them as “loopholes” to make them sound easy and exclusive.

• Some firms exploit confusion to sell paid analyses or coaching that you can often get for free (or verify) through SSA/official sources.

What you should do (practical next steps)

1. Check your own numbers at my.socialsecurity.gov — the account shows your estimated benefits and is the single best place to start.

2. Use SSA’s official pages and FAQs for any rule questions (deemed filing, restricted applications, earnings limits, delayed retirement credits). Official SSA pages explain who qualifies and any birth-date cutoffs. Social Security+1

3. Be skeptical of paid “guaranteed loophole” offers. If someone promises a secret that sounds too good to be true, verify it against SSA.gov or ask for the precise statute/regulation they’re relying on.

4. If your situation is complex (divorce, survivor, disability, high lifetime earnings, remarriage), consider a vetted CFP or elder-law attorney — but ask them to point to the exact SSA rule or POMS they’re using. Social Security Administration+1

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Here’s a clear example calculation showing how Social Security benefits can change depending on when you claim (62, 65, 67, or 70).

Let’s assume:

• Full Retirement Age (FRA) = 67 (typical for people born 1960 or later).

• Primary Insurance Amount (PIA) at FRA = $2,000/month.

• Delayed retirement credits increase benefits by 8% per year after FRA until 70.

• Early claiming reductions apply for claiming before FRA.

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📊 Estimated monthly benefit by claiming age

Age	% of FRA benefit	Monthly benefit	Difference vs FRA
62	~70%	$1,400	–$600/month
65	~86.7%	$1,734	–$266/month
67	100%	$2,000	—
70	124%	$2,480	+$480/month

(Percentages are rounded; exact reduction varies depending on months before FRA.)

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📈 Lifetime payout comparison (if you live to age 85)

Claim Age	Monthly Benefit	Years of Payments	Total Collected
62	$1,400	23 years	$386,400
65	$1,734	20 years	$416,160
67	$2,000	18 years	$432,000
70	$2,480	15 years	$446,400

➡️ Break-even point: If you live into your early 80s, waiting until 70 usually pays more overall. Claiming early gives you more years of checks, but at a lower monthly amount.

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🧮 Key notes on the math

• Early retirement reductions are permanent. If you claim at 62, you’ll always receive about 30% less than your full amount.

• Delaying beyond FRA earns 8% simple interest per year until 70.

• Taxes and COLAs (cost-of-living adjustments) will affect real numbers, but the relative comparison holds.

• If you keep working past 62, early claiming could also reduce benefits due to the earnings test